What are 4 issues with spouses trying to hide assets?
Spouse denies the existence of the asset
Spouse transfers asset to a 3rd party
Spouse claims the asset was misplaced
Spouse creates false debt
How long to review tax returns?
5 years
What is schedule A
Itemized duductions
What is schedule B
Interest and ordinary dividends
What is schedule C
P and L from business
What is schedule D?
Capital gains and losses
What is schedule E?
Supplemental income and loss
What is form 1065?
Report partnership income
Wha is form 1120S?
Report corporate income for S corps
What is form 1120?
Report corporate income
What is a career asset?
Life and health insurance
Vacation days
SS benefits
Unemployment benefits
Stock options
Pension
401K
Job experince
Job security
Professional contacts
Education
What are the two types of property division?
Separate and community property
What are the 10 community property states?
TX
WA
ID
NV
CA
AZ
NM
LA
AK
WI
Is it important to have the family business appraised?
YES
What are options when dividing a family business?
One spouse keeps the business
Both spouses keep the business
Sell the business
Is it important to collateralize a property settlement agreement? How?
Yes…with a QDRO
What IRC code allows for tax free transfer between current and divorced spouses?
1041
What are rules of the 1041?
Current spouses
Divorced spouses within a year of divorce
Divorced spouses with a 6 years with a decree
Can you right off loss on primary residence or personal vacation property?
NO
Who is responsible for the depreciation recapture when transferring assets between former spouses?
The receiving or transferee is responsible for the depreciation recapture…code IRC 179
What are the 4 types of recapture that is possible between former spouses?
Depreciation recapture
Expensing election recapture
Farmland-soil and water conservation deductions
Oil and gas property-drilling and development cost
